Restructuring charges

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

14. Restructuring charges

2024 Restructuring— On September 11, 2024, the Company committed to a restructuring plan aimed at driving greater operational efficiencies through the reduction of organizational layers, optimization of the Company’s go-to-market organization, and relocating certain roles to lower cost locations (collectively, the “2024 Restructuring”). The 2024 Restructuring impacted approximately 280 of the Company’s global workforce, primarily those located in higher-cost regions, such as the United States, as well as those within the Company’s sales and marketing and research and development functions. Of those impacted, approximately 57% had no future substantive service requirement as of the communication date, while the remaining population will continue to provide services as employees during a retention period to assist with transition and training through no later than March 31, 2025.

As a result, the Company expects to recognize total restructuring charges of approximately $17.9 million, of which $16.7 million was recognized into expense during the fiscal year ended December 31, 2024. The majority of the charges recognized were made up of $15.5 million in personnel-related costs, consisting of one-time severance payments, salary and wages earned over required retention periods, and other benefits.

For impacted employees with no future substantive service requirement, restructuring costs were recognized in-full as of the communication date. For employees rendering services through a retention period, one-time severance costs settled at the end of the retention period are recognized as restructuring costs on a straight-line basis from the communication date to the end of the required retention period. Other direct and incremental costs are recognized as incurred.

2023 Restructuring—On February 13, 2023, the Company communicated to its employees that in response to current macroeconomic conditions and to further streamline its operations and cost structure, it would reduce its global workforce by approximately 10% (collectively, the “2023 Restructuring”). As a result, the Company recognized restructuring charges of $10.1 million in the first quarter of 2023, primarily consisting of $8.9 million of personnel expenses such as salaries and wages, one-time severance payments, and other benefits. The Company also recognized $1.2 million of stock-based compensation expense on the communication date, resulting from impacted employees having no future substantive service requirement but continuing to vest into their equity awards during legally required retention periods as well as certain modifications to enable additional

vesting after impacted employees’ termination dates. The restructuring plan was completed in the third quarter of 2023.

Restructuring charges are presented as separate operating expenses within the Company’s consolidated statements of operations. The following table summarizes the activity related to the restructuring liability recorded in accrued compensation and benefits in the accompanying consolidated balance sheets (in thousands):


	Fiscal Year Ended December 31,
	2024		2023		2022
Beginning balance	$	—	$	—	$	—
Restructuring charges	16,331		9,055		—
Settlements	(9,842)		(9,055)		—
Ending balance	$	6,489	$	—	$	—